Gold

[JBmurc]

DOW got smashes yet again overnight last I seen late last night on the Nymex open like the anti-gold crowd tried there best push down gold $15 then great to see at present the Bulls have pushed it through the 1350 resistance ....$1361oz ....going up from here
good to silver Silver formed a solid bottom and is now made a bull breakout north

[Skol]

DOW got smashes yet again overnight last I seen late last night on the Nymex open like the anti-gold crowd tried there best push down gold $15 then great to see at present the Bulls have pushed it through the 1350 resistance ....$1361oz ....going up from here
good to silver Silver formed a solid bottom and is now made a bull breakout north

A suckers rally that's gonna see them cleaned out.

[JBmurc]

low volume yet again. better hope some steam keeps coming and that ehypt gets worse JB!

the steam thats comes is from the Shorts at this stage ...I see more Central banks worldwide are asking for their bullion back from the Western major Bullion banks ....one hell of a **** storm brewing IMHO

Also I see all the media Bah ...like the sale of ETF was back in JUNE not now yet they like to bring it out now it back on it's way back to it's mean

[Skol]

the steam thats comes is from the Shorts at this stage ...I see more Central banks worldwide are asking for their bullion back from the Western major Bullion banks ....one hell of a **** storm brewing IMHO

You've been reading too much KWN.

In 1980 gold fell 41%, rose 27% and then the rot really set in.

Since the 2011 high, gold has fallen 38% and risen 15%.

If the same happens this time gold would get to $1500 and then continue the crash.

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"History repeats itself all the time in Wall Street"

Edwin Lefevre - Reminiscences of a Stock Operator.
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If history does repeat itself, gold will end up at $672

And if the 1980 silver crash repeats itself, silver will end up at $5

[Daytr]

Agree Elzorro, WTI/Nymex have gone through the roof in recent months up around 20% that will certainly put a brake on US growth if it stays here or goes higher.

Nice to see gold make the break through $1350 despite what Skol says.
My resources portfolio is up 25% in two days & I expect more out of this spurt in gold yet. If it holds $1350 tonight then hopefully we should see an assault on $1400/1420 area, needs to hold first though.

[Skol]

Daytr,

The goldbugs were crowing, "it's different this time" all the way to $1,920.

Is it?

[Daytr]

Hi Skol, what the article fails to mention is that Soros bought call options in gold mining juniors, spent $25M in premium. Not huge for Soros, but that's a lot of leverage to gold juniors.

"media attack"

The usual goldbug paranoia. lol

And other goldbug hero, George Soros joins others in dumping gold, looks like the party's over.

http://www.cnbc.com/id/100964542

[Daytr]

Ha ha nice one Skol. When you think about it, its actually different everytime! So maybe this time it goes higher than $1920. Haha. Who knows, I just play the game in front of me. I do think $1350 was an important technical level, but needs to hold it & then move higher to have consolidated the gain.

Daytr,

The goldbugs were crowing, "it's different this time" all the way to $1,920.

Is it?

[Skol]

Value of gold: is this time really different?




Why is gold valued? is year in year out one of the most visited posts on this blog. For some reason that I still cannot fathom people care a lot about the value of gold. The fact that is does not have much fundamental value except for what people believe it is worth makes it almost as much a fiat currency as the money doom sayers want it to replace. Another repeated myth about gold is that its value is stable or can only go up, despite the fact that there have been some spectacular drops. Like now, where people claim that this time it is different, gold is the best refuge in the face of a major meltdown of various currencies. Or at least as a hedge against pending inflation.

Claude Erb and Campbell Harvey explore the role of gold as a hedge against inflation. It turns out gold is a very poor hedge, and if it were, it should be at half its current price. I guess this over-reaction can be attributed to herd-behavior, which nowhere as common as for gold. And with the real price of gold at twice the long term average, and the fact that mean reversion invariably kicks in, sooner or later the price is going to go significantly down. Always has, always will. This time is no different.

If gold has a useful property, it is a very good hedge against inflation in the very long run. We are talking centuries here. Erb and Harvey compare the pay of Roman and US soldiers in gold and find that they are remarkably similar. But this means also that gold does not have returns that are in any way comparable to equity. We are taking here about returns that are a small fraction of a percent. Hardly a good investment. Also, gold is no good currency hedge either, as its fluctuations are so big that they drown out the fluctuations in exchange rates. Etc. Erb and Harvey go through a series of other arguments why gold should be held, and none seems to hold water. But gold is shiny.

[STRAT]

Id love to see a turn in gold but its just a knee jerk reaction to the Egypt situation I reckon. Oil too.

Hi Skol.
How are those Airlines treating ya?